Interest rates scaring you?
👻 Refinance when the rates drop! You're only stuck with an interest rate if you want to be!
The median net worth of a homeowner is 46 times HIGHER than renters! Investing in homeownership creates an opportunity to build equity and increase wealth over time. With rent prices increasing 3-4% each year, investing in homeownership can stabilize your housing expenses. Get a good grip on your budget before buying your home and have a stable and affordable monthly payment that won't increase.
The Impact of Rising Mortgage Rates
As mortgage rates rise, they impact purchasing power by raising the cost of buying a home and limiting how much you can comfortably afford.
Assume you want to buy your first home for $400,000. If you’re trying to shop at that price point and keep your monthly payment about $2,500-2,600 or below, here’s how your purchasing power can change as mortgage rates climb. The red shows payments above that threshold and the green indicates a payment within your target range. Remember, your mortgage is based on the monthly payment you can afford based on your debt-to-income ratio and other factors, not the price of the home itself.
It is so important to work with a local realtor and mortgage expert to understand how mortgage rates impact your monthly mortgage payment at various home loan amounts. We can help you navigate 2/1 rate buy-downs and other lender programs, and negotiate seller concessions and contract terms. We know all the best tricks!
It is true that it costs more to buy a home today than it did last year, but the same is true for renting. This means, either way, you’re going to be paying more. The difference is, with homeownership, you’re also gaining equity over time which will help grow your net worth. The question now becomes: what makes more sense for you? Each person’s situation is unique.
You don't need a magic potion to create wealth and happiness for yourself. Research shows that homeowners not only build wealth simply by owning the home they live in, but they also feel higher levels of joy as a homeowner. 🤗 To make the best decision for you, let's connect to explore your options. Don’t get spooked!
